The overall objective of this project is to investigate the reasons for the substantial and persistent gradient between socio-economic status (SES) and many dimensions of health status. The first aim will be to study the central pathway from SES to health by examining whether and why future onset of new chronic conditions are related to important SES markers--household income, wealth, and education. These markers will be measured in the recent and distant past so that long-run legacy effects can be measured. We will also explore the extent to which innovations in health affect economic status. This question will be explored by estimating the effect of new health events on a series of subsequent outcomes including out-of-pocket medical expenses, labor supply, wage rates and growth, household income, and wealth. The manner in which these feedback effects from health to SES vary across the complete life cycle will be a major area of inquiry. The third aim will be to examine the nature and determinants of health disparities among new immigrants to the United States. This research will analyze the sign and magnitude of the initial health selectivity of migrants and how that selectivity varies by attributes of country of origin, visa admission status, and personal attributes. Finally, we will compare in depth the nature of the SES health gradient in two countries--England and the United States. One advantage of selecting these two countries is that England has set up institutional arrangements whose goal is to isolate individuals from the economic consequences of poor health. Another advantage is that we will be able to use the recently fielded ELSA data so that England can be compared directly to the HRS.